Ethereum (ETH) Likely To Expand Because of On-Chain Enhancements

Dalmas Ngetich

1 year ago

2 mins read

sleepwalking, technical analysis ethereum

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Ethereum (ETH) up 5.4 percent
In two years, ETH issuance may be reduced 10-fold.

From Constantinople to the activation of EIP 1234, Ethereum fundamentals are overly bullish. Add that to possible plans of reducing ETH issuance by 2021 and bulls are at a prime position to rally. At the moment, ETH is up 5.4 percent.

Ethereum Price Analysis

Fundamentals

The Ethereum developer community are a determined lot. The Constantinople update set the ball rolling. Plus, with another update in two months, all indicators point to a bullish ETH. However, in the midst of it all, the main discussion is around the consequences of upgrading and shifting from a proof-of-work system to a proof-of-stake consensus algorithm.

Although building the bare bones for a scalable and efficient network, there are wrinkles that must be ironed out. A visible one is talk around ETH issuance and whether there should be a hard cap.

Earlier, Vitalik Buterin said the total ETH in circulation would be capped at 120 million or at least twice the amount of ETH sold during the 2015 crowdfunding. In a Github post he said:

“Because issuing new coins to proof of work miners is no longer an effective way of promoting an egalitarian coin distribution or any other significant policy goal, I propose that we agree on a hard cap for the total quantity of ETH.”

Stemming from above, a vocal Ethereum developer, Justin Drake says upon Beacon Chain activation the total ETH in circulation may be slashed 10-fold:

“Here’s a possible timeline (dates likely totally wrong!) highlighting the key milestones: January 2020: Beacon chain launch. June 2020: ETH2 light clients production-ready. November 2020: ETH1 fork #1 to have its fork choice rule honor ETH2 finality (conservatively, no issuance reduced). March 2021: ETH1 fork #2 to reduce issuance by 10X.”

Candlestick Arrangement

Ideally, in case this happens then ETH would be scarcer that BTC and LTC. From supply-demand dynamics, that is massive for ETH holders as a repricing will drive prices higher. Currently, ETH is in a clear uptrend.

Nonetheless, like BTC, there are hurdles. June 27 bear candlestick defines the immediate price action since prices are still oscillating within its trade range. Therefore, while aggressive traders can buy the dips, it will fit for the conservative type of traders to wait for clear breakouts above June high.

Not only will that reaffirm bulls but it will set the pace for a possible rally to $400 as bulls begin the long journey of rewinding last year’s losses.

Technical Indicators

As a result, June 26 and 27 candlesticks are significant. Aforementioned, any breakout bar driving prices above June high ought to be with high trading volumes exceeding 554k of June 26. That will confirm bulls of May through June while acting as springboards for $400 and $500 in coming weeks.

Chart courtesy of Trading View. Image Courtesy of Shutterstock

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.